Magic Software Enterprises Ltd. (NASDAQ:MGIC) Q4 2023 Earnings Conference Call March 13, 2024 11:00 AM ET
Company Participants
Guy Bernstein - Chief Executive Officer
Asaf Berenstin - Chief Financial Officer
Yuval Lavi - Chief Technology Officer
Conference Call Participants
Chris Reimer - Barclays
Maggie Nolan - William Blair
Operator
Ladies and gentlemen, thank you for standing by. Welcome to the Magic Software Enterprises 2023 Fourth Quarter and Full Year Financial Results Conference Call. Magic’s fourth quarter 2023 earnings release was issued before the market opened this morning and it has been posted on the company’s website at www.magicsoftware.com. At this time all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation.
With us on the line today are Magic CEO, Mr. Guy Bernstein; Magic CFO, Mr. Asaf Berenstin; and Magic CTO, Mr. Yuval Lavi.
Before we start, I would like to remind everyone that projections or other forward-looking statements may be provided on this conference call. The Safe Harbor provision provided in the press release issued today also applies to the content of this call.
Magic expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations or otherwise.
Also during the course of today’s call, management will refer to non-GAAP financial measures, a reconciliation schedule showing GAAP versus non-GAAP results has been provided in the press release issued before the market opened this morning. A replay of this call will be available after the call on the Investor Relations section of the company’s website.
I will now turn the call over to Mr. Asaf Berenstin, CFO of Magic Software. Please go ahead.
Asaf Berenstin
Thank you, Operator, and thank you everyone for joining us today as we report our fourth quarter 2023 financial results. During the call today, I will review highlights from our fourth quarter results and provide an overview of our outlook.
Revenue in the fourth quarter of 2023 decreased to $125.5 million, down approximately 14.7% from the fourth quarter of 2022. As we already mentioned in the past calls during the year, the effect of the currency fluctuations over the course of the year was and still is significant compared to the corresponding quarters of last year.
On a constant currency basis, calculated based on the average currency exchange rates for the three months ended December 31, 2022, revenues for the fourth quarter of 2023 would have decreased by approximately 11.2% compared to the fourth quarter of 2022, to $130.6 million, $5 million more higher than our reported revenue figure for the quarter.